Govt. to announce tax incentives for industries soon

The government said it will soon announce tax incentives for select industries in a move to boost investment, Asia Pulse reported Wednesday (12/3/08).

A number of related ministers will meet to finalize the plan and to determine industries entitled to tax incentives, Coordinating Minister for Economic Affairs Boediono said.

Corporate income tax in Indonesia is 30% as compared to 26% in Malaysia, 20% in Singapore, 28% in Vietnam and 17.5% in Hong Kong.

Individual income taxes in Indonesia range from 5% to 35%.

Govt. plans blueprint for creative industries

Trade Minister Mari Elka Pangestu said the government is preparing a blueprint to guide creative industries, The Jakarta Post reported on Monday (10/3/08).

The industries, she said, not only contribute significantly to the country's GDP but also help project a positive image of the local business climate to the rest of the world.

The blueprint, she said, was due for implementation next year, and aims to encourage people to be more actively involved in creative industries, to help drive the national economy.

Creative industries contributed an average 6.3% to the country's GDP between 2002 and 2006, according to the latest data from the Trade Ministry.

The creative industries comprise some 14 areas; music and musical instruments, advertising, architecture, handicrafts and art festivals, antiques, design, fashion, film, video and photography, interactive games, performing arts, printing and publishing, computer services and software, and radio and television.

Since 2001, Mari said, 50% of the total consumer spending in G7 countries has been spent on creative industry products.

The upcoming blueprint, she said, would follow on from another initiative launched last year, called "Indonesia design power", which basically aimed to redesign and improve creative products manufactured by small and medium businesses.

Source: http://www.ekon.go.id